TIGA Comments on Zurich Insurance Report Conclusions

August 31, 2011 -

UK video game industry trade group TIGA said today that high technology businesses in the region were at risk of a "brain drain and skill shortages," complicated and compounded by the existence of tax breaks in other countries. The group has long sought tax breaks and incentives for the video game industry, but the financial downturn and austerity measures in the UK forced the government to abandon any measures that were on the table at the time. TIGA made the comments following a report ("The Technology Hazard Warning Report") by Zurich Insurance, which revealed that 57 percent of the UK’s mid-sized technology companies (turnover of £5 - £30 million per annum) feel that they are at risk from losing skilled employees.

The report (p. 10) offers this conclusion:

"Many qualified workers are exploring the opportunity to work abroad, with an estimated 67 per cent of IT workers considering or having applied for a position overseas according to a study by the IT job board. Portability of skills, coupled with higher salaries and the chance to enhance lifestyle are cited as the key reasons for considering a move abroad…Experts warn that the lack of students opting to study technology related subjects, coupled with tax breaks offered by other countries to entice business, means we are compounding problems further for the future."

Dr Richard Wilson, TIGA's CEO, concluded that the report confirms three of the trade groups long standing arguments: the UK is in a precarious position when it comes to "brain drain" because the region is losing highly skilled IT workers to other regions; low numbers of students studying technology subjects such as computer science is creating recruitment problems for the industry; and tax breaks that help with games production in other regions are hurting the UK.

"To surmount the challenges posed by the brain drain and skill shortages we need to incentivise students to study subjects such as mathematics and computer science," said Wilson. "Additionally, we need the Coalition Government to enable UK high technology businesses to compete on a level playing field. Many of our key competitors benefit from generous tax breaks. The UK games industry does not. TIGA will continue to make the case for a tax break for games production and for improved R&D tax credits."

More details on the Zurich Insurance report can be found here.


 
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Matthew Wilson@info depends on the sector. for example, have you looked at how powerful unions are in the public sector? I will make the argument they have too much power in that sector.07/07/2015 - 12:39pm
InfophileIt's easy to worry about unions having too much power and causing harm. The odd thing is, why do people seem to worry about that more than the fact that business-owners can have too much power and do harm, particularly at a time when unions have no power?07/07/2015 - 12:31pm
Matthew Wilsonthe thing is unions earned their bad reputation in the US. the way unions oparate the better at your job you are, the likely you want to be in a union.07/07/2015 - 11:33am
InfophilePut that way, "right to work" seems to have BLEEP-all to do with gay rights. Thing is, union-negotiated contracts used to be one of the key ways to prevent employers from firing at will. Without union protection, nothing stops at-will firing.07/07/2015 - 11:06am
Infophilehas an incentive to pay dues if they're represented either way, so the union is starved for funds and dies, unless things are bad enough that people will pay dues anyway.07/07/2015 - 11:02am
InfophileFor those who don't know, "right to work" laws mean that it can't be a condition of an employment contract that you pay union dues. That is, the right to work without having to pay dues. Catch is, unions have to represent non-members as well, so no one...07/07/2015 - 11:01am
MechaCrashUnexpected? Seriously?07/07/2015 - 10:55am
Mattsworknamejob they wanted without the unions getting involved. The problem is, it has some unexpected side effects, like the ones Info mentioned07/07/2015 - 8:49am
MattsworknameThe problem being, right to work states exsist specificly as a counter to Unions, as the last 20 or so years have shown, the unions have been doing this countries economoy NO favors. The right to work states came into being to allow people to work any07/07/2015 - 8:49am
Infophile(cont'd) discriminatory. This can only be done for protected classes which are outlined in law (race, sex, religion, ethnicity everywhere, sexual orientation in some states). So, a gay person could be fired because they're gay and have no recourse there.07/07/2015 - 7:27am
Infophile@Goth: See here: http://www.snopes.com/politics/sexuality/firedforbeinggay.asp for a good discussion on it. Basically, the problem is that in the US, most states allow at will firing, and it's the burden of the fired person to prove the firing was ...07/07/2015 - 7:25am
Goth_SkunkAssuming that's true, then that is a fight worth fighting for.07/07/2015 - 6:58am
Yuuri@ Goth_Skunk, in many states being gay is not a protected status akin to say race or religion. It's also in the "Right to work" states. Those are the states where one can be fired for any reason (provided it isn't a "protected" one.)07/07/2015 - 6:07am
Goth_Skunkregarded as a beacon of liberty and freedom that is the envy of the world, would not have across-the-board Human Rights laws that don't at the very least equal those of my own country.07/07/2015 - 5:47am
Goth_SkunkI find that hard to believe, Infophile. I have difficulty believing employers can *still* fire people for being gay. I would need to see some evidence that this is fact, because as a Canadian, I can't believe that the United States,07/07/2015 - 5:46am
InfophileFor that matter, even women don't yet have full legal equality with men. The US government still places limits on the positions women can serve in the military. And that's just the legal side of things - the "culture wars" are more than just laws.07/07/2015 - 5:43am
InfophileAnd that's just LGB issues. Get ready for an incoming battle on rights for trans* people. And then after that, a battle for poly people.07/07/2015 - 5:41am
InfophileA battle's been won. In many states employers can still fire people for being gay. And in many states, parents can force their children into reparative therapy to try to "fix" being gay. Those battles still need to be fought.07/07/2015 - 5:40am
Goth_Skunkand now they've switched to battles that don't need to be fought.07/07/2015 - 5:37am
Goth_SkunkIn my opinion, it was the final legal hurdle denying homosexual couples final and recognized statuses as eligible spouses. But even though this war's been won, some people are still too keen to keep fighting battles,07/07/2015 - 5:28am
 

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